Money has been flowing around the world through alternative remittance channels ever since migrants began moving overseas. Before international money transfer organisations stepped in with their cost-effective deals and global connectivity, there were limited choices for those who wanted to send money back home.
Earlier migrants often relied on relatives, friends and other contacts to deliver cash in person and also delivered cash themselves when they made home visits. Even today people act as couriers and work with underground networks like ‘Hundi’ to transfer funds from one country to another. This article explores the risk involved in alternative remittance networks and the benefit of using legal remittance organisations.
Alternative remittances could also mean unreliable
Most people choose alternative remittance networks as they are often free or cheaper than legal remittance options. A friend or acquaintance may be prepared to deliver your cash at no cost if they are travelling to your home country. It may be perfectly acceptable if you trust the person and can be certain that your money will be delivered when you want, where you want and to whom you want. However what if your friend or acquaintance turns out to be untrustworthy? What if you have been tricked into using an intermediary who steals your funds? And even if they are trustworthy, what if they lose the money or are robbed in transit?
From a myopic viewpoint, alternative remittance services may be cheap or even free but they are not necessarily safe and secure. To a large extent you are risking your hard-earned money because there is no guarantee and you are entirely dependent on the schedule of the person who is delivering the money. If you need to transmit funds urgently or regularly, alternative remittances are not only risky but unreliable too.
Alternative remittances are illegal
‘Hundi’ or ‘hawala’ as it is called in Arabic-speaking countries involves the practice of money being transferred from one location to another via a network of dealers or brokers, based on the principle of honour rather than surety. Since such remittances operate outside the ambit of statutory financial regulations they are highly susceptible to corruption and have been outlawed in some countries, based on anti-money laundering compliance programs
The advantages of money transfer organizations
Over the years remittance networks have evolved from traditional modes of transfer to digital modes of money transfer. Thanks to the rise of affordable digital remittances, there is less reason for people to favor alternative remittances, which brings us to the compelling advantages of money transfer organisations. Reliability is the key benefit of using a dependable money transfer organisation like Xpress Money. You have the choice to decide how, when and where your funds are transferred and be assured that it will be delivered safely and securely to any of the 160,000 agent locations worldwide.
Some people may always choose alternative remittance networks but those who seek affordability with speed, efficiency, security and versatility in money transfers always have Xpress Money as a solution for successful remittances.